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Bank Auction to be averted until lockdown is revoked

Dear Concerned, Karnataka HC has granted interim relief to petitioners and stayed the auction of properties by banks during the 21 days lockdown owing to COVID 19 through its order dated 24.03.2020. While disposing an Interim Application in Writ Petitions Nos.6632/2020 6643/2020, 6645/2020, 6641/2020, 6653/2020 on 24 th March, 2020 made the following observations.

In view of the prevailing situation and the strict implementation of the Government Order No.HFW 54 CGM 2020 dated 23.03.2020 promulgated by the State Government whereby, the operations of various Departments and movement of individuals has been severely curtailed. The State Government has excluded certain activities and in respect of Banks, only excluded activity is Bank teller services and operation of ATMs. If that be so, if proposed auctions are permitted to be held, it would amount to violation of the Government Order.

A Single Judge Bench of Justice G Narendar has noted, prima facie, the Court was of the opinion that any activity by any of the Departments beyond the exceptions provided under the Government Order dated 23.03.2020, including the holding of auctions by Banks, would constitute a violation of the Government Order entailing prosecution.

Court is of the opinion that the proposed auctions require to be averted till the restrictions imposed under the Government Order are revoked. In that view of the matter, this Court is of the opinion that the petitioners are entitled to an interim protection. Accordingly, there shall be stay of proposed auctions.

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